Analysis & Opinion »

  • Yen Consolidates Ahead of FOMC Meeting

    Over the course of the next year quantitative easing should continue to flood the market as tapering of bond purchases are likely put off until the middle of 2014. More bond purchases has reduced longer term yield making it difficult for the dollar to gain ground against any major currency. The 10-year yield differential which

  • 28 October Forex daily review
    Technical Analysis »

    28 October Forex daily review

    October 29, 2013, 08:16 GMT

    On Monday, the U.S. dollar closed up to its competitors. The euro / dollar fell by 0.16% and the rate of the pound / dollar fell by 0.23%. U.S. data was came out mixed again. The volume of industrial production in the U.S. in September rose by 0.6% compared to 0.4% in August (consensus 0.5%).

  • The dollar Holds Steady as Rates Decline

    US interest rates continue to remain at the bottom of their current range as speculation on increasing rates due to potential tapering has been put off until the middle of 2014. Futures traders are now pricing in the first tightening of rates in 2015, which could reflect a potential slowdown in US economic activity. The

  • Cable is Stable after In-line GDP
    Technical Analysis »

    Cable is Stable after In-line GDP

    October 26, 2013, 14:15 GMT

    Sterling has been one of the better performing currencies over the past few weeks, as investors baked in a neutral policy for the Bank of England. Data points during early October showed that the UK economy was performing better than in the recent past, with increasing levels of inflation and a tightening labor market. At

  • Yield Differential Lags Currency Pair

    The Euro broke out above resistance levels and continued to move higher on Thursday recapturing the 1.38 level. The strength in the Euro has brought unwanted attention from finance ministers who are starting to complain about the high levels of the currency and its effect on exports. Purchasing manager’s data was shrugged off, despite lower

  • US stocks trading higher after positive Q3 earnings results

    US stocks started the trading session on a positive note, as earnings from Ford (NYSE:F) and 3M (NYSE:MMM) came in better than expected. Chinese PMI data also beat expectations helping Asian stocks gain traction. AT&T (NYSE:T) reported mixed results which kept the telecom sector in check. China’s HSBC manufacturing PMI surprised investors with a stronger

  • Potential Chinese Loan Defaults hits Riskier Assets

    The positive sentiment market participants felt after the Department of Labor released a weaker than expected payroll report was reverse today as China reported news that there were increases in bad loans. The ECB reported Wednesday that they will start a process of review of banks in the EU, which will include trading operations and

  • US stocks snap rally on subdued earnings forecasts

    Stocks on the American exchange snapped a five day rally after earnings forecasts were revised for large US-based enterprises. Caterpillar (NYSE:CAT) fell more than 6 percent after the heavy equipment maker posted lower than forecasted quarterly profits, prompting another revision of the company’s full-year forecast. The company cited a prolonged demand drag from the mining

  • Mixed Earnings Results brings on Risk Aversion

    Stocks in the US started off on a soft note Wednesday after hitting a new all-time high on the S&P 500 index on Tuesday. Chinese loan demand has pushed banks into a situation where loan growth tripled, creating a potential bubble. Earnings were mixed, as Boeing reported better than expected earnings while Caterpillar reported a

  • Strong Aussie Gains Could be Poised for a Correction

    With the US government closure and potential debt default now in the rear view mirror, investors will begin to focus on economic data which will hit the tapes this week. The backlog of US economic data points which include September’s employment report will help investors paint an economic picture which will give central bankers a